Veteran Education Payments

[Jack Koehne]

If a taxpayer has veteran benefits to pay for their childs education, can they still take the education credit since this was paid by a non taxable benefit?

Background info: A pilot retires from the military and receives a DFAS 1099-R and VA benefits for dependents tuition. Taxpayer receies a 1098-T for payments at a qualified university.

[Burke]

If a taxpayer has veteran benefits to pay for their childs education, can they still take the education credit since this was paid by a non taxable benefit?Background info: A pilot retires from the military and receives a DFAS 1099-R and VA benefits for dependents tuition. Taxpayer receies a 1098-T for payments at a qualified university.

Are you saying the VA benefit went directly to the institution for tuition? Or that the only reason he got the VA benefit was for tuition?

[ChEAr$]

If a taxpayer has veteran benefits to pay for their childs education, can they still take the education credit since this was paid by a non taxable benefit?

Background info: A pilot retires from the military and receives a DFAS 1099-R and VA benefits for dependents tuition. Taxpayer receies a 1098-T for payments at a qualified university.

Take a look at IRS publication 570 which comprehensively deals with this subject.
You'll see there that VA educational benefits reduce the amount to be used to figure the credit.

After all, would it be fair to get the benefits and still get a refundable credit to boot?

[JON]

VA Benefits for a child

I thought 570 was dicussing the GI Bill payments??? I is news to me someone besides the GI would benefit. I would love to know more... Lucky government is required to balance the budget? OOPS?

[Koss]

Transfer of Benefits to Dependents

There was an earlier thread on this... somewhere...

This is indeed something new.

Here's a link, that probably has more information than you could possibly need:

http://www.defense.gov/home/features/2009/0409_gibill/

BMK